success stories for county owned nursing homes in our area

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Dekalb's County Board decision to sell their public nursing home in 2022, without a referendum was much more disastrous. 

Dekalb county public nursing home sale in October 2023, the sale of the DeKalb County Rehab & Nursing Center, located on Annie Glidden Road in DeKalb, fell through. The DeKalb County Board had initially voted to sell the facility for $8.3 million to Evanston-based Illuminate H.C. in July 2022. However, the buyers (principals from Illuminate HC and Saba Healthcare) terminated the purchase agreement. Reason for Failed Sale:

• Public scrutiny arose when county officials learned Illuminate HC intended to work with the leadership of Saba Healthcare, the other company that bid on the facility, once the sale closed.
• The DeKalb County Board had previously rejected Saba's bid in 2022, partly due to concerns about the company's track record.
• Principals from Illuminate HC and Saba Healthcare created DeKalb Healthcare Holdings LLC, which was the entity contracted to buy the nursing home.
• The Illinois Health Facilities and Services Review Board declined to let the sale proceed, citing the questionable background and ethics of the potential buyer. 

Aftermath:

• The DeKalb County State's Attorney filed a lawsuit against the one-time buyers for fraud and breach of contract. The lawsuit claimed the organizations "defrauded and manipulated" the county before backing out of the deal.
• The county recently settled the lawsuit, with the settlement money ($250,000) coming from the escrow account established during the sale process.
• The nursing home remains under county ownership.
• The county is now focused on ensuring the facility provides quality care and becomes financially stable.
• The county board has approved financial plans and established an oversight board for the nursing home.
• The facility is anticipated to break even financially within 12 to 18 months. 

In summary, the DeKalb County public nursing home was proposed to be sold to Illuminate HC for $8.3 million, but the deal was terminated due to concerns about the buyer's association with Saba Healthcare and issues raised by the Illinois Health Facilities and Services Review Board. The county sued the buyers for the failed sale, and the lawsuit was recently settled. The nursing home remains under county ownership, and efforts are underway to improve its financial situation.

The Illinois Health Facilities and Services Review Board (HFSRB) did not allow the sale of the DeKalb County Rehab & Nursing Center to proceed by declining to grant the necessary Dekalb's Certificate of Need (CON). Why the CON was not granted:

• The HFSRB had concerns about the questionable background and ethics of the potential buyer, particularly their association with Saba Healthcare.
• The State Board delayed making a decision twice.
• Questions about the buyers' quality of care at other facilities went unanswered.
• The HFSRB cited a lack of clarity on the buyers' quality of care at other facilities.
• Board members were concerned about violations issued to the buyers.
• It was revealed that Illuminate H.C., the intended buyer, had purchased Saba Healthcare, which had a history of concerns and was initially rejected by the DeKalb County Board.
• Concerns were raised about Saba Healthcare's low ratings and reported issues, such as abuse allegations and unsatisfactory business operations. 

Essentially, the HFSRB's refusal to grant the Certificate of Need, based on the concerns about the potential buyer, was a crucial factor in the failure of the sale of the DeKalb County nursing home. 

The privatization of the former county-run facility has been a point of ongoing controversy. The most recent and notable nursing home sale in Champaign County involves the former University Rehabilitation Center, previously the publicly owned Champaign County Nursing Home. The facility closed in 2023, and after being listed for sale, it was reported as "under contract" in July 2024. Timeline of the sale

• April 2019: The Champaign County Board sold the publicly owned Champaign County Nursing Home to a private company, University Rehab Real Estate LLC, for $11 million.
• 2022: After just three years, the new owners sought to lift restrictive covenants on the property to allow for its resale, citing unviability as a nursing home. The county board denied the request.
• April 2023: University Rehabilitation Center of C-U filed a plan with the state to close the facility, citing financial losses. The closure went into effect on June 17, 2023.

https://cu-citizenaccess.org/2023/12/champaign-residents-warned-the-county-about-a-nursing-home-operator-now-four-senior-facilities-are-closed/

The owner's perspective vs. critics' arguments

• The owner's view: The owner, William "Avi" Rothner, argued that economic reality and shifting trends in senior care made the nursing home financially unsustainable. He requested to lift a restrictive covenant from the sale that required the facility to operate as a nursing home until 2028, proposing a sale to a substance-abuse treatment center instead.

• Critics' arguments: Critics, including some county board members and community groups, argued that the owner was prioritizing profit over the community's need for affordable, long-term care. They pointed to the fact that the previous county-run entity also struggled financially but was not expected to turn a profit. They expressed disappointment that the for-profit model "destroyed our nursing home".